RenoWorks Software Valuation

Is RW undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

Below Fair Value
Significantly Below Fair Value
Price-To-Sales vs Peers
Price-To-Sales vs Industry
Price-To-Sales vs Fair Ratio
Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of RW when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: RW (CA$0.31) is trading below our estimate of fair value (CA$1.43)

Significantly Below Fair Value: RW is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for RW?

Key metric: As RW is unprofitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for RW. This is calculated by dividing RW's market cap by their current revenue.
What is RW's PS Ratio?
PS Ratio	1.8x
Sales	CA$6.71m
Market Cap	CA$12.81m

RW key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	1.8x
Enterprise Value/EBITDA	-47x
PEG Ratio	n/a

Price to Sales Ratio vs Peers

How does RW's PS Ratio compare to its peers?

The above table shows the PS ratio for RW vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	Forward PS	Estimated Growth	Market Cap
Peer Average	1.6x
AKR Ackroo	2.1x	n/a	CA$13.8m
IQ AirIQ	1.9x	n/a	CA$12.5m
AGET AGEDB Technology	2.1x	n/a	CA$12.5m
VQS VIQ Solutions	0.2x	n/a	CA$9.4m
RW RenoWorks Software	1.8x	n/a	CA$12.8m

Price-To-Sales vs Peers: RW is good value based on its Price-To-Sales Ratio (1.8x) compared to the peer average (2.4x).

Price to Sales Ratio vs Industry

How does RW's PS Ratio compare vs other companies in the CA Software Industry?

27 Companies	Price / Sales	Estimated Growth	Market Cap
QUIS Quisitive Technology Solutions	0.6x	6.2%	US$69.52m
BTCW Bitcoin Well	0.5x	n/a	US$26.53m
PLUR Plurilock Security	0.4x	n/a	US$19.51m
NOW NowVertical Group	0.4x	6.2%	US$16.97m

27 Companies		Estimated Growth	Market Cap

No more companies

Price-To-Sales vs Industry: RW is good value based on its Price-To-Sales Ratio (1.8x) compared to the Canadian Software industry average (3.6x).

Price to Sales Ratio vs Fair Ratio

What is RW's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

RW PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio	1.8x
Fair PS Ratio	n/a

Price-To-Sales vs Fair Ratio: Insufficient data to calculate RW's Price-To-Sales Fair Ratio for valuation analysis.

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Insufficient data to show price forecast.

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